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6 Tips for Buying Foreclosure Homes

6 Tips for Buying Foreclosure Homes

Loads of foreclosure properties has been sweeping all across the United States, severally bring the property value down, forcing families to move and having government agencies handle the crisis as soon as possible. Surprisingly some buyers see this as an opportunity of a lifetime. Some buyers are buying homes for dirt-cheap prices. Many real estate agents have been reporting that they have been getting calls from all over the country and as far as Mexico from people trying to buy multiple houses, other want to buy in bulk. One individual wanted to buy over 150 homes under 10K.

Despite the economic fears and the struggling housing market, there are numerous stories where first time homebuyers were lucky, smart and bought the right property for a low-cost and is now paying $350 a month for a 3 rooms, 2 baths house and that’s including insurance and taxes. She’s in her late 30’s and has been a renter all her live.

That’s a happy story; there are other people who have lost their homes they’ve been working hard for all their lives, and to make it even worst other folks have lost multiple properties, cars and even jobs.

The sign on the front lawn might say FORECLOSURE but foreclosure has it’s dark side

ForeclosureSign-local-records-office

 

Foreclosure Tip #1. Check your Budget Carefully.

 

Don’t let a small price tag lure you into buying a foreclosed house. Before buying ask yourself numerous questions: Do you have extra money for all the repairs the house is going to need? Who is going to repair it? Do you have extra cash incase you don’t find tenants? If you think ahead you have little risk.

 

Foreclosure Tip #2. Check out the Property for Yourself

A lot of properties may look good on pictures but not in person. Pictures will most likely not show the damaged areas of the house. You don’t want to end up with a house that will cost you more to fix than the profit you will make.

 

Foreclosure Tip #3. Look at the surrounding neighborhood

You should always look at the surrounding neighborhood. One of the biggest mistakes people make is that they don’t look at the neighborhood they are planning to buy property in. Your home might be a recently built house in a crime-infested neighborhood. For more tips on how to pick the right neighborhood click here. Also, you may not be able to recoup the cost of the repairs if the value of the house is depressed by widespread foreclosures in the area.

 

Foreclosure Tip #4. How long has the property been deserted?

In most cases the longer the house has been empty the more damage there is. There are a lot of problems that come with homes that have been empty for a long time. The water pipes get clogged; sewer gases back up, water damage, etc.

 

Foreclosure Tip #5. Look at the Landscape

If the house has been neglected for many years the grass, tress, plants and branches will be over grown and will most likely have bugs and insects that will crawl from the landscape into the house.

 

Foreclosure Tip #6. Inspector, Hire one

This one is a no brainer; an inspection should be the first thing on your list. Banks usually require a home inspection when lending money for a mortgage. But even if you’re paying out of your pocket find the most you can so you can fix it. It is crucial to be up-to-date with inspection to avoid fines and other fees.

 

Foreclosure Bonus Tip:

Don’t expect big profit for a quick sale. Investors who buy property with the intensions to do as little as possible to improve a property, hoping to resell for a profit when the market improves, may find little profit and a lot of headaches. Some cities are cracking down on property owners who neglect their properties. Charging high fees that increase over time, and don’t forget that neglected houses lose value at a high rate. For more information on property history report check out Local Records Office.